"ICAI will write a letter to PwC on Thursday and will seek an immediate reply on the issue and inform them about the process of investigation, which is on," ICAI president Ved Jain told PTI.

He said that strict action will be taken if the auditors, of country's fourth largest IT firm Satyam, are found guilty.

"We will ensure that to any person who has not worked according to our standards and our expectations, severe punishment be given," he said.

PwC's comments are still awaited. Following a letter from the Satyam chairman, who accepted that he had misrepresented facts in the company's balance sheet, role of auditors and accountants for the company has also come under scanner.

In fact, the ministry of corporate affairs announced that role of directors and auditors at Satyam would be scanned by ICAI and the apex body of company secretaries ICSI.

However, Jain also pointed out that before the body takes any action against the members involved in the "fraud", it needs to collect facts and information.

"So we are looking into that and we will start our proceedings," he added.

"All one needs to prove is he (auditor) was a party to the fraud. He can be booked under the Companies Act and the Chartered Accountants Act. . . in case of negligence by the chartered accountant, we have a severe punishment," Jain said.